East Pipes Announces New Steel Pipe Production Line worth SAR 48 Million

East Pipes Integrated Company for Industry announced on Sunday the signing of several contracts with entities and consultants to supply machinery and equipment to establish a new line to produce Helical Submerged Arc Welded (HSAW) pipes at the Company’s factory in Dammam 2nd Industrial City.

The Company explained that the cost of the project is approximately SAR 48 million, as the project will be financed from the Company’s available cash, bank facilities and other financing programmes.

According to the announcement published on “Tadawul”, the project will begin in Feb. 2025, and the Company expects the project to be completed in the fourth quarter of the fiscal year 2025-2026.

The Company confirmed that this project reflects its commitment to driving growth in the Kingdom, in line with its position as a leading company in the pipe manufacturing sector, as the new line will add approximately 100 thousand metric tons to the current nominal capacity of 400 thousand.

The Company stated the project to have an impact on its financial results in 2025-2026 and 2026-2027. It also expects the project’s trial production start date to be in the fourth quarter of 2025-2026, for a month, while the project’s commercial production date will be the first quarter of the fiscal year 2026-2027.